Credit Suisse Fraud Exceeded $1 Billion: N.J.’s Hoffman

Credit Suisse Group AG (CSGN) defrauded investors of more than $1 billion by misrepresenting the risks of its residential mortgage-backed securities, acting New Jersey Attorney General John J. Hoffman said in an interview.

Hoffman’s office sued Credit Suisse over claims it misled investors about the risk involved in more than $10 billion in securities issued in 2006 and 2007, before the housing market collapsed. The lawsuit follows one by New York Attorney General Eric Schneiderman, who claimed last year that the bank misled investors about its review of mortgages underlying securities.

“Credit Suisse was greedy and irresponsible,” Hoffman said yesterday. “The losses are in excess of $1 billion and likely in the billions.